The Digitization Wave in India: A SWOC Analysis with Special Reference to the Demonetization and a Leap towards Cashless Economy

Abstract

The recent demonetisation has pushed up the volume of digital payments and efforts to a cashless economy. According to the World Payment Report 2017, the Government of India has set a target to achieve 25 billion non-cash transactions by 2017-18 commencing a roadmap towards a full-fledged digital economy. Nevertheless, the situation of India with this regard is critical as there are numerous setbacks ranging from socio-economic to geo-political dimensions that has and will have an effect on the digital transition. The changing market scenario and the technological advancements of smartphones and internet have opened up a Pandora’s Box. This served as other drivers to the development of digital banking, e-wallets, e-commerce, green banking, mobile banking and so forth. This paper is focused on understanding the prospects and challenges of cashless economy in India. As a corollary to this the paper also tries to identify various loopholes in the system which might hinder the growth of digitisation process in the country. The analysis suggests how digital illiteracy, digital divide, lack of infrastructure, cyber security and so forth affects the transition of a cashless society in a developing country like India. The challenges are immense; however a thorough planning and implementation of policies to tackle them would smoothen out the transition process and work to the benefit of the nation.